With numerous companies coming out with new as well as unique ULIP plans the market is sure to offer the investors more and more options to invest. ING Vysya a company that has made a name for itself in the financial world has several ULIP plans on offering. Below we review the “Market Shield” ULIP plan offered by ING Vysya Life Insurance Company Limited.
The objective of the plan aims for financial protection of the family by providing a good return on the investment. To list down some of the special features of the plan would be:
- Guaranteed NAV
- Flexible premium payment term.
- Charge free withdrawals
In order to apply for this Market Shield plan the applicant needs to be anywhere between the age of 8 to 55 years. The policy term ranges between 15-20 years.
So what are the benefits offered by the Market Shield ULIP plan?
Like any other ULIP plans it has several benefits attached to it. Some of them are:
Death Benefit: If the life assured policyholder dies within the policy period, the beneficiary is entitled to receive higher of the amount assured or 105% of the total premium paid which is deducted by the partial withdrawals (if any) or the special fund value. Special fund value corresponds to the calculated value on higher of the daily NAV or the Guaranteed NAV.
Maturity Benefit: This special fund value is paid as a lump sum amount to the policy holder on maturity.
Flexibility in premium payment terms: One of the attractive features of the plans is that the policyholder has the option to increase or decrease the duration for which they wish to pay the premium for.
How the money you invest gets utilised?
You might think of the consequences and the risks of investing in a ULIP such as Market Shield. Also as an investor you are entitled to be aware of the fact that how your money gets utilised. The company plans to balance the risk by investment in equities when the market situation is good whereas in debts when the market is showing downward trends. It is pretty unlike any other ULP schemes which have several funds to invest in. Under Market shield there is only one fund where the applicants could invest in. It has been named G-NAV.
Guaranteed NAV as the plan stands for is the primary selling point of the ING Market Shield offering guaranteed NAV to the investors. As per this feature the investors are offered a protection of 80% of the highest NAV achieved during the policy term. This means that even if the NAV fells the policyholder is secured as he would get 80% of the highest NAV achieved in the entire term.
The allocation of the funds collected by ING is allocated anywhere between 0-60% in equity and 40-100% in Money markets and cash. And as any other ULIP plans the investment risks would be borne by policyholder.
Does the fund provide tax benefits?
Yes, similar to any other ULIP plans Market Shield also provides a tax benefit of the yearly premium paid (up to 1 lac) U/s 80C of the Income Tax Act. Also the death claim is free U/s 10(10D).
Conclusion:
Market Shield ULIP option by ING Vysya is an excellent product as it offers a gurantee of minimum NAV which means that even though there is a fall in the equity markets the policyholder would not suffer in any manner. Another benefit attached to this policy is the option of choosing the policy term of your choice which would help you manage the cash flows easily.
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